FxWirePro: GBP/AUD hits 8-month low, downside risk remains
• GBP/AUD declined on Thursday as Brexit-related risks, speculation about negative rates continued to weigh on British pound.
• The cross pair has continued to decline, breaking below the 1.8100 level, the lower end of the range. The prospect of a more downside is well under way.
• At GMT 16:12, the pair hit daily low at 1.8048, it was last down 0.40% on the day at 1.8088.
• Daily, monthly RSI and moving averages imply bearish momentum is intact, a fall below 1.8000 is likely.
• On the upside, immediate resistance is located at 1.8187 (23.6% fib ), any close above will push the pair towards 1.8350 (5 DMA).
• On the downside, immediate support is seen at 1.8052 (Lower BB ) and break below could take the pair towards 1.8000 (Psychological level ).
Recommendation: Good to sell on rallies around 1.8100, with stop loss of 1.8200 and target price of 1.7900.